Constructive possession under Hindu Succession law enlarges a widow's share into absolute ownership, validating firm registration.

A female Hindu's vested statutory interest in her deceased husband's share of joint family property enlarges into absolute ownership under section 14(1) of the Hindu Succession Act, 1956 if she is possessed of that interest in law or in fact when the Act commences. Constructive possession is sufficient, and a separate partition by metes and bounds is not required. On that basis, the widow's interest became full ownership, giving her a definite separate share in the partnership assets. The partnership formed with her adopted son was therefore valid, and the firm was entitled to registration.

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Issues: Whether the widow's interest in the deceased husband's share in joint family property became absolute property under section 14(1) of the Hindu Succession Act, 1956, and whether the partnership formed between her and her adopted son was valid so as to entitle the firm to registration under section 26A of the Indian Income-tax Act, 1922.

Analysis: The widow had obtained a vested statutory interest in her husband's share under section 3(2) of the Hindu Women's Right to Property Act, 1937. Section 14(1) of the Hindu Succession Act, 1956 is of wide import and converts into full ownership any property possessed by a female Hindu on the date of commencement of the Act, whether possession is actual or constructive. Possession for this purpose includes possession in law, and the existence of a separate partition by metes and bounds is not necessary. Since the widow continued to be entitled to the share devolved on her, that interest enlarged into absolute ownership on the commencement of the Hindu Succession Act, 1956. Accordingly, when the partnership was entered into, she had a definite and separate interest in the partnership assets.

Conclusion: The partnership was valid and the firm was entitled to registration.

Final Conclusion: The reference was answered in favour of the assessee, and the Tribunal's view granting registration to the firm was upheld.

Ratio Decidendi: Property devolved on a female Hindu under a statutory limited estate becomes absolute ownership under section 14(1) of the Hindu Succession Act, 1956 if it is possessed by her in law or in fact when the Act commences; such constructive possession is sufficient even without physical partition.

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